Sony’s Financial Services business to become wholly-owned subsidiary

Maria Nikolova

Sony is making a tender offer for shares and other equity securities of Sony Financial Holdings, of which it currently owns an approximately 65% stake.

Sony Corp (TYO:6758) today announced a series of changes to Sony Group’s organizational structure, including plans to turn Sony Financial Holdings Inc. (SFH) into a wholly-owned subsidiary.

In order to achieve further growth and strengthen governance within its financial services business and thereby enhance the corporate value of the overall Sony Group, Sony is making a tender offer for shares and other equity securities of SFH, At present, Sony has a 65% stake in SFH.

Sony explains that, alongside electronics and entertainment, financial services form a core business that is integral to the long-term growth strategies of the Sony Group. Until now, SFH has maintained its position as a listed subsidiary due to, inter alia, its ability to flexibly procure capital for growth. However, rather than continue to operate the business within certain constraints as a listed subsidiary, Sony has decided to make a tender offer with the aim of making SFH a wholly-owned subsidiary in order to ensure the implementation of optimized strategies for each business, and to drive further Group-wide synergies.

Sony will work closely with the new SFH management team to implement measures such as initiatives to further increase the value generated by the “Lifeplanner” sales employees that are central to the life insurance business and explore further opportunities for synergies including leveraging Sony technology in SFH’s business.

Among other upcoming changes, it is worth noting that, effective April 1, 2021, Sony Corporation will change its company name and relaunch as “Sony Group Corporation”.

Sony Corporation currently has two functions, one as the headquarters of the Sony Group, and the other to provide overall management support for its electronics businesses. These functions will be separated and redefined, with Sony Group Corporation focusing on its role as the headquarters of the Sony Group.

As the change in company name from Sony Corporation to Sony Group Corporation requires approval at the Sony Shareholders’ Meeting, a proposal requesting such authorization will be submitted at the Sony Shareholders’ Meeting, scheduled for June 26, 2020.

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